A consortium designed to promote Welsh higher education across the world will shut down today after funding was pulled.

The Wales International Consortium (Wic) was formed in 2003 by all the nation’s universities to establish Wales as a desirable and competitive study destination in the international market.

Central to its mission was a commitment to increasing the recruitment of full-time international students into Welsh higher education.

The operation was match-funded by the Higher Education Funding Council for Wales (Hefcw) and the institutions themselves, with support from the British Council.

The Western Mail understands there were plans, discussed in January, to transfer Wic subscriptions to a new international fund run centrally by HEW.

But Wic’s paid staff – director Virginia West and administrative officer Sandra Bendelow – were told in April they would lose their jobs and the programme would close.

A senior university manager, who chose to remain anonymous, said Wic had been a victim of its own success.

“You couldn’t have any criticism of Wic or its staff – there’s no question it’s been a great success,” said the source.

“Wales, over the period of Wic’s existence, has improved its recruitment and international work dramatically and at a much faster rate than England.

“The problem with institutions is that when things are going well, they acclaim things for themselves and Wic has really fallen foul of its own success.”

The British Council’s director of higher education, Pat Killingley, said Wic had made a “significant contribution” to international activity and its closure after nine years was “disappointing”.

A study compiled last year by consultants Oxford Economics found that foreign students pump a quarter of a billion pounds into the Welsh economy.

It estimates their presence in Wales adds £237m to the nation’s gross domestic product and more than 9,000 jobs in our communities.

The amount universities contributed to Wic varied on their size and international student numbers – altogether, Wic subscriptions totalled around £75,000 a year for its three-year funding cycle.

The Wic operation was due for renewal this summer but Hefcw’s decision to scale back its contribution – from £75,000 to £12,000 – meant universities would have to make up the shortfall.

A decision to pull Wic funding and effectively close the operation was taken earlier this year by Higher Education Wales (HEW), a representative body made up of vice-chancellors.

At last month’s final meeting of the Wic board, members discussed an e-mail from HEW stating there would be no transfer of Wic activity and no separate subscription service for future international activities.

Members then considered a proposed “Option 1” – which had been tabled at a prior meeting of the HEW committee and involved the appointment of a new “international policy adviser” to increase opportunities for Welsh universities overseas.

Another university source said: “Wic was a shining example of universities working really well together and it is a real shame that it has come to an end. Funding is of course tight, but at time when the Welsh Government and others expect us to focus on internationalisation, leaving the sector without an international function is a disaster.”

A spokesman for HEW said it was decided in January to pursue new support for the sector’s international activities – and a new approach had since been developed.

“This fresh approach will be aimed at further strengthening Wales’ international performance,” he said.

“It takes into account the extremely strong international teams which have been developed within institutions over the last decade, with strong international student recruitment records, and the changing trends within global higher education particularly in relation to research, transnational education and partnerships.

“It would be hard to over emphasise the importance of international activities to Welsh universities and to Wales. Strategic support which ensures that Welsh universities remain at the forefront of global higher education provision is required.”

The consortium had been without an elected chairman since former Newport vice-chancellor Dr Peter Noyes stood down for personal reasons in May.

A spokeswoman for Hefcw said budgets had been scrutinised as a consequence of its reduced core funding. Ms West was contacted but declined to comment.